Dubai Taxi Company Reports Revenue of $530 Million in 2023

Backed by influx of international travellers visiting Dubai, Dubai Taxi Company (DTC), a leading provider of comprehensive mobility solutions in the Emirate, on Friday reported a revenue of $530 million, an increase of 11% y-o-y, for the financial year ending 31 December 2023.

While delivering a strong performance during 2023, DTC also completed its landmark listing on the Dubai Financial Market (DFM) in December. The number of trips increased during the period, supported by the strong growth of Dubai and DTC’s exclusivity agreements in high-volume areas of the city, including Dubai International Airport.

DTC’s fleet size at the end of 2023 was more than 7,400 vehicles, with its taxis and limousines completing 46 million trips in 2023, an increase of 8% year on year.

The strong revenue performance resulted in a 55% year on year increase in EBITDA to $133.54 million, a margin of 25% and an increase of 7 percentage points year-on-year, supported by DTC’s continued focus on driving operational efficiencies through technology adoption, with initiatives including its state-of-the-art control centre optimising fleet distribution and the increased adoption of e-hailing improving the customer journey.

While the net profit was $94.01 million, up 54% year-on-year, with free cash flow of $35.12 million, the company maintained a healthy balance sheet during the year, with a highly attractive net debt to EBITDA ratio of1.3x.

DTC also secured a $272 million term loan in 2023 with a maturity of five years as well as a revolving credit facility of $54.45 million, from which there were no drawdowns during the year.

DTC Chairman Abdul Muhsen Ibrahim Kalbat said that the company’s strong inaugural set of results following its successful IPO, highlighted the strength of its business, which is underpinned by the growth of Dubai, our market leading position and a supportive regulatory environment.

“DTC has a well-defined vision and strategy that capitalises on Dubai’s ambitious urban development and robust resident and tourism growth, ensuring we are well positioned to deliver long-term growth and value creation for our shareholders,” he added.

DTC CEO Mansoor Rahma Alfalasi said that the company continued to make strides with its strategic priorities, expanding fleet and implementing smart technologies to drive efficiency across segments. With a leading taxi market share in Dubai and several opportunities to expand into neighbouring emirates, DTC plays an instrumental role in connecting people and developing the nation’s world-class transportation infrastructure, he said.

“Looking ahead we see a supportive environment for growth driven by Dubai’s status as a premier tourist destination and the expansion of the emirate’s urban areas.”

The company has approved its first dividend of $19.33 million subject to shareholder approval at the annual general body meeting, which is expected to be distributed in April 2024.

Outlook

DTC has a positive outlook across all segments, bolstered by Dubai’s strong economic outlook with a forecasted population growth Compound Annual Growth Rate (CAGR) of 2.8% between 2023 and 2040, and a tourism CAGR of 20.5% between 2023 and 2025.

Additionally, the Dubai 2040 Urban Master Plan, which will see the development of new urban clusters across Dubai, is expected to drive increased demand for taxis and limousines.